Marvell agrees to buy Lumentum in an all-stock deal with an implied enterprise value of $115 billion

Marvell Technology and Lumentum announced on Monday that they have entered into a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction, according to a joint press release. Lumentum stockholders will receive a fixed exchange ratio of 4.500 Marvell shares for each Lumentum share. The release says the transaction has an implied enterprise value of $115 billion for Lumentum, representing about $1,132 per Lumentum share and a premium of about 23.9%, based on each company’s unaffected closing share price on Oct. 28, the last trading day before market speculation about a deal began.

Marvell stockholders would own about 67% of the combined company on a fully diluted basis, and Lumentum stockholders about 33%, the release says. Matt Murphy would remain chairman and chief executive. Three Lumentum directors, including Lumentum CEO Michael Hurlston, would join Marvell’s board, which currently has seven directors. Both boards approved the deal unanimously.

The companies said they expect the deal to close in the first half of calendar 2028, subject to approval by both companies’ stockholders, regulatory approvals and other customary conditions. They said it is expected to provide line of sight to more than $1 billion in annual run-rate cost synergies and to be accretive to Marvell’s non-GAAP earnings per share in the first year after closing. The release also says the combination is expected to expand the combined company’s total addressable market to $550 billion.

Reuters reported that the deal is one of the biggest of 2026 and that Lumentum is roughly half Marvell’s size. In an extended version of its story, Reuters put the equity value at $102.54 billion, and said Marvell’s largest earlier purchase was its $10 billion acquisition of Inphi in 2021. It said Nvidia invested $2 billion each in Marvell and Lumentum earlier this year, and that the deal steps up Marvell’s challenge to larger rival Broadcom. Reuters said Marvell shares rose 2.8% in premarket trading and that trading in Lumentum shares was halted.

Reuters also said Lumentum shares had fallen about 8% and Marvell shares about 22% since the talks were first reported late last month, as a broad chip selloff accelerated following Intel’s weak forecast. Because the exchange ratio is fixed, the dollar value of the offer will move with Marvell’s share price, AI Tech Daily notes.

“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” Murphy said in the release.

Marvell agrees to buy Lumentum in an all-stock deal with an implied enterprise value of $115 billion

Sources